Institutional Federal Compliance Report 2021

STATE OF NEW YORK

Schedule of Findings and Questioned Costs

March 31, 2019

Federal Agency:

United States Department of Health and Human Services

Federal Program:

Maternal and Child Health Services Block Grant (93.994)

Federal Award Numbers:

17B04MC30630, 18B04MC31505, and 19B04MC32560

Federal Award Years:

2017, 2018, and 2019

State Agency:

Department of Health

Reference:

2019-029

Criteria Title 45 U.S. Code of Federal Regulations Part 96 (45 CFR 96), Block Grants , section 96.30(a) states except where otherwise required by Federal law or regulation, a State shall obligate and expend block grant funds in accordance with the laws and procedures applicable to the obligation and expenditure of its own funds. Fiscal control and accounting procedures must be sufficient to (a) permit preparation of reports required by the statute authorizing the block grant and (b) permit the tracing of funds to a level of expenditure adequate to establish that such funds have not been used in violation of the restrictions and prohibitions of the statute authorizing the block grant. New York State Governmental Accountability, Audit and Internal Control Act of 1987 highlighted the need for agency management to promote good internal controls and accountability in government. Article 45, Internal Control Responsibilities of State Agencies, section 951 Executive Internal control responsibilities states the head of each state agency shall (a) establish and maintain for the agency guidelines for a system of internal control that are in accordance with this article and internal control standards; (b) Establish and maintain for the agency a system of internal control and a program of internal control review. The program of internal control review shall be designed to identify internal control weaknesses, identify actions that are needed to correct these weaknesses, monitor the implementation of necessary corrective actions and periodically assess the adequacy of the agency’s ongoing internal control; (c) make available to each officer and employee of the agency a clear and concise statement of the generally applicable management policies and standards with which the officer or employee of such agency shall be expected to comply. Such statement shall emphasize the importance of effective internal control to the agency and the responsibility of each officer and employee for effective internal control; (d) designate an internal control officer, who shall report to the head of the agency, to implement and review the internal control responsibilities established pursuant to this section; (e) implement education and training efforts to ensure that officers and employees within such agency have achieved adequate awareness and understanding of internal control standards and, as appropriate, evaluation techniques; and (f) periodically evaluate the need for an internal audit function. Condition During the fiscal year ended March 31, 2019, the Department of Health (the Department) passed through $17,950,000 under the Maternal and Child Health Services Block Grant to local districts to provide programmatic services. In accordance with the New York State Internal Control Act, the Department performs a voucher trace control on a sample basis to ensure vouchers submitted for reimbursement are in accordance with the applicable rules and regulations and therefore allowable expenses. Subrecipients are selected for the voucher trace control by the Department through a scored risk assessment and all subrecipients must be

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